S&P: Harmony Foods notes at B-

Standard & Poor's said it assigned a preliminary B- corporate credit rating to Harmony Foods Corp. and a preliminary B- issue-level rating to its proposed $105 million of senior secured notes due 2016. The preliminary recovery rating is 4, indicating average (30% to 50%) recovery in the event of a payment default.

The outlook is stable.

The company will use the proceeds from the offering to refinance existing debt, fund a $41 million distribution to equity holders and pay transaction fees and expenses.

The preliminary ratings are based on the assumption of a successful completion of this refinancing, the agency said.

The ratings on Harmony Foods reflect the company's vulnerable business profile and highly leveraged financial profile, given the company's narrow product focus, small size and high debt leverage, the agency said.

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